Ola Electric Mobility has received board approval to raise up to Rs 1,700 crore through the issuance of non-convertible debentures (NCDs) and other eligible debt securities, the electric two-wheeler manufacturer informed the stock exchanges on Thursday.
It marks the Bengaluru-based company’s first fundraising exercise since its initial public offering (IPO) in August last year.
In a regulatory filing, the company—currently facing heightened scrutiny from regulators and users—said the funds will be raised in one or more tranches. However, it did not disclose other specific details, including the intended use of proceeds.
The fundraising is part of the company’s broader efforts to strengthen its financial position and support operations and growth amid increasing challenges, including a sliding stock price and declining market share.
Ola Electric Mobility shares closed at Rs 51.5 apiece on the BSE on Thursday, well below its IPO price of Rs 76.
According to data from the government-run Vahan portal, Ola Electric Mobility lost its market leadership in the electric two-wheeler segment in April to TVS Motor. The company registered 19,709 vehicles last month, down 42% year-on-year, capturing 21.46% of the market.
The company has come under regulatory scrutiny in recent months over alleged sales discrepancies, vehicle quality issues and the absence of trade certificates at several retail outlets, factors that have contributed to its weakening grip on the electric two-wheeler market.
In February, it faced regulatory heat over inconsistencies in its reported sales figures. While Vahan data showed 8,652 vehicle registrations that month, the company reported sales of 25,000 units in regulatory filings.
The company attributed the gap to a temporary backlog caused by contract renegotiations with registration service providers Rosmerta and Shimnit India. Nevertheless, the discrepancy triggered inquiries from the heavy industries and road transport and highways ministries.
Meanwhile, Aggarwal recently said in a post on microblogging platform X that Ola Electric will begin deliveries of its electric bike Roadster X from May 23.
In October-December 2024, Ola Electric Mobility’s net loss widened 50% year-on-year to Rs 564 crore, while its operating revenue declined 19%. The company has yet to report its financial results for the fourth quarter of 2024-25.
It marks the Bengaluru-based company’s first fundraising exercise since its initial public offering (IPO) in August last year.
In a regulatory filing, the company—currently facing heightened scrutiny from regulators and users—said the funds will be raised in one or more tranches. However, it did not disclose other specific details, including the intended use of proceeds.
The fundraising is part of the company’s broader efforts to strengthen its financial position and support operations and growth amid increasing challenges, including a sliding stock price and declining market share.
Ola Electric Mobility shares closed at Rs 51.5 apiece on the BSE on Thursday, well below its IPO price of Rs 76.
According to data from the government-run Vahan portal, Ola Electric Mobility lost its market leadership in the electric two-wheeler segment in April to TVS Motor. The company registered 19,709 vehicles last month, down 42% year-on-year, capturing 21.46% of the market.
The company has come under regulatory scrutiny in recent months over alleged sales discrepancies, vehicle quality issues and the absence of trade certificates at several retail outlets, factors that have contributed to its weakening grip on the electric two-wheeler market.
In February, it faced regulatory heat over inconsistencies in its reported sales figures. While Vahan data showed 8,652 vehicle registrations that month, the company reported sales of 25,000 units in regulatory filings.
The company attributed the gap to a temporary backlog caused by contract renegotiations with registration service providers Rosmerta and Shimnit India. Nevertheless, the discrepancy triggered inquiries from the heavy industries and road transport and highways ministries.
Meanwhile, Aggarwal recently said in a post on microblogging platform X that Ola Electric will begin deliveries of its electric bike Roadster X from May 23.
In October-December 2024, Ola Electric Mobility’s net loss widened 50% year-on-year to Rs 564 crore, while its operating revenue declined 19%. The company has yet to report its financial results for the fourth quarter of 2024-25.
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